Former House Financial Services Committee Chairman Patrick McHenry has thrown his weight behind the CLARITY Act, calling it the most sweeping technology-regulatory legislation since the 1996 Telecommunications Act. In an opinion piece published July 18, the North Carolina Republican argued the bill is essential if the United States wants to keep its lead in digital assets.
McHenry framed the act not as a crisis response but as a foundation for future innovation. U.S. financial regulation has grown too conservative since the global financial crisis, he wrote. Companies want clear rules, not more uncertainty. He compared the moment to the 1996 telecom law, which he said let the internet industry boom precisely because it set reasonable regulation and consumer protections early on.
The blockchain industry needs the same treatment, McHenry argued. Without a clear federal framework, innovation and investment will stall. Other countries are already updating their own systems. The U.S., he wrote, should use the CLARITY Act to pull in global capital and talent – or risk ceding the sector to rivals.
The bill is already moving through Congress. McHenry noted that the GENIUS Act, a separate stablecoin regulation bill, passed with bipartisan support. Digital-asset market structure legislation is also drawing broad backing, he added. That momentum, in his view, shows the political will exists to overhaul how the U.S. treats crypto.
The 1996 Telecommunications Act deregulated the telecom industry and sparked the broadband and internet boom. McHenry’s comparison is direct: he wants lawmakers to see the CLARITY Act as the same kind of catalyst for digital assets. The bill would replace the current patchwork of state and federal guidelines with a single national framework.
The next step is floor debate in the House. With committee approval already secured, the question is whether McHenry’s bipartisan appeal can carry the day in an election year. If it does, the U.S. could have its first comprehensive crypto market structure law – and a regulatory foundation as consequential as the one that opened the internet.
McHenry backs CLARITY Act to keep the U.S. ahead in digital assets
Former House Financial Services Committee Chairman Patrick McHenry backed the CLARITY Act, a bill setting federal rules for blockchain and digital-currency businesses, saying it could attract investment and talent to the U.S. The bill is moving through Congress, and McHenry compared it with the 1996 telecom law, arguing that clear rules and consumer protections helped the internet industry grow.